"Legislators and the FCC must seriously consider further regulatory measures, such as the down-conversion of digital signals or the subsidy of adaptors for millions of existing TVs," said James Pennune, Director of the Strategy Analytics Broadband Media and Communications Practice. "The next 12 months will be a critical period, as consumer electronics vendors launch a new generation of digital receivers incorporating government-mandated features such as ATSC tuners and CableCARD slots. At the same time, market factors are combining to promote demand for digital TV. These include a growing base of households with HD-capable displays and the increasing importance of HD programming services to cable and satellite operators competing for high-value subscribers."